Wales experienced growth in sale prices across the quarter by 2.2%, according to the Wales House Price Index
Average house prices in Wales have seen a late-year rise due to heightened demand following the end of the first lockdown in June – rising 3% to an average of £196,165.
The new data comes from Principality Building Society’s Wales House Price Index for Q3 2020 and also reveals that Wales experienced growth in sale prices across the quarter by 2.2%. However, the number of property sales was down by 58% between April and September when compared with the same period in 2019.
In September 2020, six local authorities in Wales – Bridgend (£190,948), Cardiff (£247,030), Carmarthenshire (£172,708), Gwynedd (£198,279), Newport (£213,660) and Powys (£222,992) reached a new record average house price. With the exception of Cardiff, these areas are all included in the top 11 local authorities in Wales with the highest proportion of detached or semi-detached homes, which would indicate they are likely to appeal to buyers looking for more spacious homes suited to lockdown living.
Mike Jones, Chief Risk Officer at Principality Building Society, comments: Although it might appear to be somewhat implausible to be reporting rising prices in the middle of a pandemic, we believe this reflects the increase in demand following the Q2 lockdown. It is also potentially the desire for a lifestyle change for some who during lockdown have realised that it is possible to work from home, avoiding the necessity to travel to work on a daily basis.
He said, the demand for larger homes with additional space, including outdoor areas, has consequently risen, however, and with little new supply coming to the market, prices also rose rapidly.
In Wales, the Land Transaction Tax (LTT) concession introduced in July moved the threshold from £180,000 up to a new level of £250,000 until 31 March 2021, worth a maximum of £2,450 to people who buy a property for this price.
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